Craig Thomson may face huge tax bill

Craig Thomson faces more than a court battle. There has been a lot of commentary surrounding what he will have to fork out if he fails to convince the court of his innocence. However, one main issue that has been overlooked is his potential tax liability for undisclosed earnings which, together with interest and penalties, could well exceed a few hundred thousand dollars.

The fact that there is ample evidence to show that he used union funds to pay for his own personal expenses the Tax Office would have no trouble raising amended assessments for undisclosed income – they would simply have to read the FWA’s report. Under the tax laws the onus of proving an amended assessment as being incorrect rests entirely with the taxpayer. It would be interesting to observe such a spectacle.